U.S. patent number 7,249,062 [Application Number 10/753,743] was granted by the patent office on 2007-07-24 for method for transacting for a perishable object having an uncertain availability.
This patent grant is currently assigned to Nor1, Inc.. Invention is credited to Arthur L. Norins, Arthur L. Norins, Jr..
United States Patent |
7,249,062 |
Norins, Jr. , et
al. |
July 24, 2007 |
Method for transacting for a perishable object having an uncertain
availability
Abstract
The present invention enables the purchase of perishable objects
by ascertaining and attaching a value to the certainty that the
perishable object will be available and adjusting the value of the
product or service for purchasers willing to pay the discounted
value on the condition that the perishable object may not be
available at the time of expiration. Rather than paying the
certainty value, the prospective purchaser is given the opportunity
to enroll in a pool for the perishable object. At a certain time
the perishable is released to the pool of purchasers, who are then
selected to purchase the item.
Inventors: |
Norins, Jr.; Arthur L.
(Cupertino, CA), Norins; Arthur L. (Cupertino, CA) |
Assignee: |
Nor1, Inc. (Cupertino,
CA)
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Family
ID: |
34381170 |
Appl.
No.: |
10/753,743 |
Filed: |
January 8, 2004 |
Prior Publication Data
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Document
Identifier |
Publication Date |
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US 20050071245 A1 |
Mar 31, 2005 |
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Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
Issue Date |
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60505929 |
Sep 25, 2003 |
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Current U.S.
Class: |
705/14.35;
705/26.1 |
Current CPC
Class: |
G06Q
10/02 (20130101); G06Q 30/0235 (20130101); G06Q
30/06 (20130101); G06Q 30/0601 (20130101); G06Q
30/08 (20130101) |
Current International
Class: |
G06Q
30/00 (20060101) |
Field of
Search: |
;705/26,27 |
References Cited
[Referenced By]
U.S. Patent Documents
Foreign Patent Documents
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2001014409 |
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Jan 2001 |
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JP |
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2001048143 |
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Feb 2001 |
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JP |
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2002074108 |
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Mar 2002 |
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JP |
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2002117266 |
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Apr 2002 |
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JP |
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2003150740 |
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May 2003 |
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JP |
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Other References
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Pascal Courty, "Some Economics of Ticket Resale," Journal of
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other .
You; Airline Seat Management with Rejection-For-Possible-Upgrade
Decision; Elsevier Science Ltd; 2001; Transportation Research Part
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Primary Examiner: Smith; Jeffrey A.
Assistant Examiner: Airapetian; Mila
Attorney, Agent or Firm: Greenberg Traurig, LLP
Parent Case Text
CROSS-REFERENCE TO RELATED APPLICATIONS
This application is a claims priority from U.S. provisional
application Ser. No. 60/505,929 entitled METHOD AND SYSTEM THAT
ENABLES PERISHABLE OBJECT COMMERCE BY ASSOCIATING DECREASED COST
WITH INCREASED ACQUISITION UNCERTAINTY, filed Sep. 25, 2003, and
the complete contents of that application are incorporated herein
by reference.
This application is related to co-pending application entitled
SYSTEM AND METHOD FOR TRANSACTING FOR AN UPGRADE HAVING AN
UNCERTAIN AVAILABILITY, filed concurrently herewith, and the
complete contents of that application are incorporated herein by
reference.
Claims
What is claimed is:
1. A computer implemented method for offering a perishable object
for sale, comprising: (a) making an offer from a seller to a buyer
for an opportunity to engage in a transaction for a purchase of the
perishable object at a single displayed non-zero monetary
discounted price, wherein the single displayed non-zero monetary
discounted price being the only non-zero monetary discounted price
displayed for the purchase of the perishable object, wherein the
single displayed non-zero monetary discounted price is set by the
seller, and wherein a time that the offer at the non-zero monetary
discounted single displayed price is made to the buyer is before a
time when the transaction at the non-zero monetary discounted
single displayed price would be carried out; (b) accepting by the
buyer, at a time after the making of the offer to the buyer, the
offer of the opportunity to engage in the transaction of the single
displayed non-zero monetary discounted price, wherein the
acceptance of the offer by the buyer obligates the buyer to
purchase the perishable object but does not obligate the seller of
the perishable object to sell the perishable object to the buyer
such that the commitment of the buyer to purchase the perishable
object is made before it is known whether the seller will make the
perishable object available for sale; and (c) transacting or not
transacting, at the option of the seller and at a time after
acceptance by the buyer of the offer, a purchase of the perishable
object by the buyer at the non-zero monetary discounted single
price set by the seller; (d) wherein the perishable object is an
object which loses essentially all of its value at a time of
expiration of the perishable object.
2. The method of claim 1, wherein the perishable object is a
service.
3. The method of claim 2, wherein the service is selected from the
group consisting of: (a) a transportation service; and (b) a
lodging service.
4. The method of claim 3, wherein the transportation service is
selected from the group consisting of: (a) an airline service; (b)
a bus service; (c) a rail service; and (d) a ship service.
5. The method of claim 3, wherein the lodging service is for a
hotel room.
6. The method of claim 1, wherein at least one document associated
with the purchase is generated.
7. The method of claim 1, wherein the perishable object is a
product.
8. The method of claim 1, wherein the time when the transaction at
the non-zero monetary discounted price would be carried out is a
specific time set by the seller and known by the buyer when the
offer is made.
Description
BACKGROUND OF THE INVENTION
Many objects including travel, events, products, services have a
finite life with an abrupt ending associated with a complete or
partial loss of value. Other objects approach this finite life
behavior. All of these objects can be considered to be perishable.
If these finite life objects are not sold prior to their death they
go unused and are wasted. A seat on an airplane that has not been
sold at departure goes unused and the potential revenue from its
sale is lost. A seat at a concert that goes vacant has no value
after the performance. There are a variety of business methods but
none are optimally able to prevent this loss.
Consider the common business methods. The standard method places a
price for an object. At that price it can be expected that a
certain number of the objects will be sold in a period of time. If
the objects are not selling well the price can be lowered and
additional objects can be sold. Buyers who require the object will
buy at the original offering price. Potential buyers who do not
wish to pay the price will often delay their purchase hoping for a
lower sale price. This delays selling, promotes price reductions
and diminishes total revenue. In another common practice, a price
is set and bargaining ensues between the buyer and seller until a
price is reached that the buyer and seller agree upon and there is
a sale; or when there is no meeting of the minds there is no sale.
Haggling in this manner has to be repeated for each object. In an
auction business method a number of buyers bid for the object; the
highest bidder buys the object. In a variation of the auction
method a price is set and then lowered until there is a bidder. If
in any of these methods there is the additional constraint of a
finite life to the object, then the seller is often ultimately
forced to dramatically decrease the price in hope of a last minute
sale or accept total loss. Another common method is the use of an
option, wherein the potential buyer pays to secure the right to buy
an object at a future time. The holder of the option can be certain
that he or she will be able to purchase the object so long as the
option exists. This is because the seller is obligated not to sell
the object in order to fulfill the obligation to deliver if the
option is exercised. This method does not encourage sales and
leaves the buyer with certainty that the object will be
available.
Several patents are disclosed that illustrate different business
methods involved in the sale of an object. For example, U.S. Pat.
No. 6,606,603, issued on Aug. 12, 2003 to Josh Joseph et al.,
describes a method for ordering items using an electronic catalog.
In the system a customer through an index has the advantage of
examining a plurality of suppliers. There is no ability however to
make an agreement in advance to buy perishable objects at a reduced
cost.
U.S. Pat. No. 6,594,641, issued on Jul. 15, 2003 to Adam Southam,
describes a computer facilitated selling system. In this system the
buyer is aided in finding the source supplier of an object. The
system allows the supplier to recognize their local retail
distributor that was by-passed by the buyer and reward the retailer
with a commission. It does not offer a new fundamental method of
doing business.
U.S. Pat. No. 6,587,838, issued on Jul. 1, 2003 to Augustine
Esposito et al., describes a method for conducting real time
electronic commerce. This method is capable of connecting a buyer
with many vendors. It offers no mechanism for aggregating a group
of buyers interested in the sale of surplus perishable objects at a
reduced cost.
U.S. Pat. No. 6,578,013, issued on Jun. 10, 2003 to Rose Davis et
al., describes a method for communicating between supplier and
customer devices. This system is used for the repeat buyer who has
information stored with the supplier regarding the buyer and type
of objects usually purchased. This is an aid in the purchasing
process and could be used for perishables. It does not provide a
mechanism for the buyer to make an advanced agreement to buy the
object if the price is lowered.
U.S. Pat. No. 6,556,976, issued on Apr. 29, 2003 to Kevin Callen,
describes a system for transacting e-commerce. The system includes
a process for recognizing areas for cost reduction. There is no
mechanism for handling acquisition uncertainty.
U.S. Pat. No. 6,553,346, issued on Apr. 22, 2003 to Jay Walker et
al., describes a management system for packages of goods or
services. The transaction involves a conditional purchase order in
which there is an early agreement involving holding individual
parts of the package for a set time. This business method does not
address the needs of selling perishable objects with an established
reduced cost associated with acquisition uncertainty.
U.S. Pat. No. 6,507,822 issued on Jan. 14, 2003 to Jay Walker et
al., describes a method of managing the sale of a product over a
period of time. It addresses the problem of recognizing the need to
have a method of reducing an object's price the longer it remains
unsold. This aids an essentially standard marketing procedure.
U.S. Pat. No. 6,473,744, issued on Oct. 29, 2002 to David Tuck et
al., describes a method for trading electric energy. It permits the
various buyers and sellers to have a view of what is being
currently offered. This information enables purchasing. It does not
address the problem of a seller who recognizes the possibility of
future excess supply that could go unused. There is no mechanism
for being able to reach an agreement with buyers for possible sale
of this excess energy at a lower cost with acquisition
uncertainty.
U.S. Pat. No. 6,466,919, issued on Oct. 15, 2002 to Jay Walker et
al., describes a management system for aggregating purchase orders
from a number of buyers and then determining best pricing. The
purchase orders by the buyers have requirements placed on them in
order to be effected. The system does not address the problem of
perishables being sold at a lowered cost associated with
acquisition uncertainty.
U.S. Pat. No. 6,418,415, issued on Jul. 9, 2002 to Jay Walker et
al., describes a management system for aggregating purchase orders
from a number of buyers. The purchase orders have requirements
placed on them in order to be effected.
U.S. Pat. No. 6,345,090, issued on Feb. 5, 2002 to Jay Walker et
al., describes a management system whereby calling parties can
submit purchase orders to various long distance carriers in order
to achieve low pricing. There are restrictions set up by the
calling party and if they are met the calling party is committed to
use the service. In this method the calling party does not know
what the final price will be; it is essentially an aid to the
standard process of getting the supplier with the lowest bid for
the indicated service.
U.S. Pat. No. 6,269,343, issued on Jul. 31, 2001 to Matthew
Pallakoff describes a system that allows sellers to communicate
conditional offers to potential buyers. This allows a number of
buyers to consider purchase and in this way form a group with
increased volume. It is a form of demand-based pricing where prices
go down with increased volume of purchase. There is not a reduction
in price associated with acquisition uncertainty.
U.S. Pat. No. 6,240,396, issued on May 29, 2001 to Jay Walker et
al., describes a system for a buyer to make a guaranteed offer to
buy a ticket for a specific price to a plurality of sellers. Any
seller can accept or reject the offer. This is a different
marketing system from the acquisition uncertainty method in which
the buyer agrees to purchase the ticket at a specific reduced price
if the supplier makes the ticket available at a designated time
near the time of the event; remaining tickets can be sold in this
way and are not wasted.
U.S. Pat. No. 6,202,051, issued on Mar. 13, 2001 to Thomas
Woolston, describes an auction business method on the Internet.
This is an automated mechanism enabling the auction business
method. It differs from the acquisition uncertainty method in which
the object is specific and the reduced price is associated with the
uncertainty the object will be purchasable.
U.S. Pat. No. 5,897,620 issued on Apr. 27, 1999 to Jay Walker et
al., describes a method for the sale of an unspecified-time airline
ticket representing a purchased seat on a flight to be selected
later for a specified itinerary. In this business method there is
not a specific ticket being purchased. The buyer knows the day but
not how the transportation will occur until near flight time. The
cost may or may not be what can be achieved from a system in which
excess seating is found to exist. The acquisition uncertainty
method is different.
U.S. Pat. No. 5,873,069, issued on Feb. 16, 1999 to Douglas Reuhl
et al., describes a system for keeping track of prices on many
items, in many stores and markets. The system does not address the
problem of what the pricing should be when dealing with perishable
goods that can go to waste.
U.S. Pat. No. 5,845,265, issued on Dec. 1, 1998 to Thomas Woolston,
describes a method and apparatus for creating a computerized market
for used and collectible goods. This is an old market system that
is dramatically expanded using new technology. It allows visibility
of multiple products to a plurality of customers. It is a different
marketing that serves a different need.
U.S. Pat. No. 5,757,917, issued on May 26, 1998 to Marshall Rose et
al., describes a computerized system for the payment of the
purchase of goods and services. This system can be used by a
variety of business methods but in itself is not a method of doing
business.
U.S. Pat. No. 5,797,127, issued on Aug. 18, 1998 to Jay Walker et
al., describes a system that can be used for using options to
purchase airline tickets. One purchases an option to by a specific
airline ticket at a specific price, if the option is exercised the
ticket price is paid in addition to the price of the option. The
benefit to the buyer is that if the trip is not needed only the
price of the option is lost.
U.S. Pat. No. 5,404,291, issued on Apr. 4, 1995 to Gordon Kerr et
al., describes a process used to maintain inventory control in a
hotel reservation system. This type of inventory information can be
used in many business situations. It does not provide a method for
the hotel and customer to enter an early agreement on a discounted
price for either a room or a room upgrade depending on future
availability. In the acquisition uncertainty business method the
discounted price is awarded at an agreed upon future time if there
is availability.
Several Non-United States Patents are reviewed that illustrate
different business methods involved in the sale of an object. For
example, Requested Patent JP2001014409 issued Jan. 3, 2001 to Akira
Kagami et al., describes a system by which knowledge of the
ownership of a purchased ticket can be followed even when the
ticket is transferred to another person. The system does not assist
the method by which tickets are sold or their price. It identifies
ownership of a ticket at any specific time.
Requested Patent JP2002074108 issued on Mar. 15, 2002 to Masahide
Tsuboi describes a system used in selling a variety of merchandise.
The system incorporates a price algorithm based on many factors,
which determines the price at any moment. The user then decides to
buy or not to buy based on that price. This is a standard market
method of purchase with the significant exception that price is
continually changing. Everyone will pay a different price. The
system requires long periods of attention. It alters the normal
sale of items at an established reasonable price.
Requested Patent JP2002117266 issued on Apr. 19, 2002 to Katsunori
Tsuji et al., describes a system which maintains information
regarding air tickets issued in order to help in making additional
reservations. The system is designed to help end users including
travel agents make reservations. The information can be accessed by
appropriate individuals using a prescribed network.
Requested Patent JP2003150740 issued on May 15, 2003 to Jiro
Onoyama describes selling tickets to a performance over a network
using information about the performance stored in a data base and
purchase by the choice of an auction or by a lottery program. It
does not make use of an agreement to purchase in advance at a
reduced price if available. It therefore differs from the
acquisition uncertainty method.
None of the above patents and the inventions they represent taken
by themselves or as a group describe this invention as claimed.
Thus the acquisition uncertainty business method and the system
that enables it is an invention that will enable perishable object
commerce.
BRIEF SUMMARY OF THE INVENTION
In the present invention a buyer enters an advance agreement with
the seller to buy an object at a specified price if the object is
made available by the seller at a specified time. The buyer may
have exact knowledge of the object and its downward-adjusted price;
however the buyer is not certain that the object will be available
for purchase but knows the specific time this knowledge becomes
available. Because of this uncertainty of purchase the offered
price is lower than the price at which the object can be regularly
purchased. The buyer must have flexibility; in return for the
flexibility there is decreased cost. If the buyer requires
certainty of purchase then the regular price will be paid in order
to have the assurance of acquisition. In the acquisition
uncertainty business method the seller is able to attract
additional buyers who are committed to buy if objects remain after
regular sales. This method of sales is especially valuable for a
wide range of perishable objects.
There has not been a good model for disposing of remaining objects
just prior to the end of their finite life without greatly
influencing the normal sale of objects. With perishable objects, as
with most objects of commerce, most times there are additional
buyers if they become knowledgeable of an object's lowered cost.
The problem is to be able to attract these buyers and reach a sale
agreement when there is only a short period before the object loses
all value. The acquisition uncertainty business model is able to
attract these buyers. The buyer is able to get a lower cost because
there is decreased confidence that the buyer will be able to make
the purchase. In this method the buyer must have flexibility. The
seller is protected from the last minute need to drop the price.
The reduced price is one that is discounted to a level that the
seller has pre-decided rather than one that is hurriedly and
arbitrarily introduced to accommodate over supply. The buyer agrees
in advance to purchase the object at the set lower price. The
consummation of a sale is delayed until a future designated time at
which time the seller will declare how many objects are available
for sale. If the number of buyers' agreements to purchase is less
than the number of available objects, all buyers will be satisfied
in a purchase. If there is an excess number of possible
transactions over objects, a selection process can be used to
select the actual buyers. A variety of selection procedures,
including random, can be employed. Buyers make their agreement to
buy during an announced open enrollment period. During that open
period they may also cancel their agreement. Once the open period
ends the buyers remaining in the program are committed to buy if
they are selected. If there are an excess number of buyers to
available objects, those not selected are not charged. A potential
buyer cannot enter the program once the open period is closed.
Everyone who enters the program has a chance of being selected. The
buyer who enters the program realizes that there is a chance of not
being able to purchase the object; there may not be enough objects
made available and/or there may be an excess number of buyers. This
model will encourage an increased pool of buyers who, because of
cost, would not consider a purchase at the regular cost. The seller
is able to continue normal sales during this program. The seller
receives a great deal of private information regarding market
characteristics that can help in future pricing and allocation of
resources. It encourages use of objects and decreases waste.
The present invention provides a method of transacting for a
perishable object whose availability is unknown. This system
implements the use of an acquisition uncertainty method. At an
early time a buyer agrees to buy an object at a reduced cost if the
seller at a designated future time puts the object on sale. The
reduced cost to the buyer is associated with the uncertainty that
the object will be purchasable. The seller is able to maximize the
length of the period before a decision has to be made to sell the
object at the reduced cost. The sale is made in an orderly manner
that benefits all. The term object refers broadly to items,
products, services or anything else that is purchasable. This
system is especially important in the sale of perishable objects
that abruptly lose value. There is a wide range of perishable
objects such as, but not limited to: transportation services
including seating on an airline, ships, trains, and buses; theater
seats; event participation; energy resources; lodging; vacation
packages, and human services.
In many business situations there is a time when a product has no
further value; the product is perishable. When the flight has left
the gate or when the theatrical play has begun the remaining unused
seats bring no revenue. There are other situations in which there
is no final moment but there is still a need to sell service or
product within certain time frames. An example is the utilization
of the services of construction personnel; if there are no projects
there is still the cost of the workers. If they are not working
their time is lost. There is often a need to sell an amount of
product during a time period; if it is not sold inventory costs
remain. The present invention achieves this otherwise wasted
utilization and revenue in many such situations. It recognizes that
there is a cost for the confidence of immediate knowledge of
acceptance of purchase and likewise there is a diminished cost if
there will be delayed knowledge of acceptance of purchase.
This invention allows a seller and buyer to arrange for the sale of
an object, namely an item, product, service or anything else that
is purchasable.
The seller establishes: That offers to purchase an object will be
accepted; The downward-adjusted fixed value of the object; The open
period of time during which offers are accepted and can be
cancelled; The specific time when a response to accept offers of
purchase will be given; and That there will be a method of
selection from among the potential transactions of those seeking to
purchase;
The buyer agrees: To purchase a specific object; To purchase at the
designated price; To be able to withdraw a potential transaction
from the program during the open period; That there will be a
delayed but specific time of confirmation; To be obligated to
purchase if selected; and That there is no charge if not
selected.
The system: Offers a discounted price to the buyer; Allows a seller
to know that there are buyers for the discounted price; Does not
interfere with sales at the standard price; Encourages additional
buyers who consider the lower price but not the regular price;
Requires buyer flexibility since confirmation of purchase is
delayed; and Utilizes the concept that there is a value which
attaches to confidence.
In one embodiment the method is divided into the events that occur
in each time period and the periods are temporally sequenced. There
are four periods. In the Announcement Period the system is
described for potential buyers. This explains how the system in
general operates. It then describes the elements of the sale of a
specific object. The Open Period is the time when buyers apply to
the program, make the agreement to purchase, submit potential
transactions, and are allowed withdraw potential transactions
without penalty. The Closed Period is the time in which no further
applications or withdrawals are accepted. It is during the Closed
Period that the seller makes the decision as to whether any objects
are to be made available for sale. The buyers potential
transactions are then selected from the buyer's pool. At the
appropriate time the buyers are notified of the results of the
selection process. In the final period the object is used by the
acquisition confirmed buyers.
The invention is a system that enables commerce in perishable
objects by offering the buyer decreased cost in return for
uncertainty associated with acquisition and by offering the seller
return on what might otherwise be wasted and lost.
BRIEF DESCRIPTION OF THE FIGURES
FIG. 1 is an overview of the computerized system usable to
implement the present invention.
FIG. 2 is a block diagram showing the basic invention as carried
out within the system.
FIG. 3 is a block diagram showing the method as used for the
purchase of an airline ticket.
FIG. 4 is a block diagram showing the purchase of a perishable
object where the confirmation and selection of the transactions are
performed in stages.
FIG. 5 is a diagram showing the program flow from a user
perspective in accordance with a method for operating the system of
the present invention via the Internet.
FIG. 6 is an overview of the computerized system.
FIG. 7 is an overview of the computerized system including the
direct payment interface option.
DETAILED DESCRIPTION OF THE INVENTION
A computerized system for transacting for a perishable object, for
example through an Internet website via the Internet or other
communications linkage, is created for communicating and processing
a transaction for a perishable object.
A perishable object is anything which has a time of expiration.
Such objects include, but are not limited to: seats and upgrades
for airlines, trains, ships, and buses; stadium seats, hotel rooms,
tickets to a performance, labor services in between jobs, and a
whole host of products and services that are subject to
unavailability or diminished value at a time of expiration.
A buyer purchasing an upgrade for a product or service which has a
substantially well defined expiration time pays value for the
certainty that the perishable product or service will be available
for his or her use at the time of expiration. Many a price
sensitive consumer is willing to forgo the product or service
rather than pay that full value. The result is that many perishable
objects of commerce expire without ever being purchased. Thus there
is a market for those who would purchase the object but for the
value paid for the certainty that it will be available at the time
of expiration.
The present invention enables the purchase of perishable objects of
commerce by ascertaining and attaching a value to that certainty
and adjusting the value of the product or service for purchasers
willing to pay the discounted value on the condition that the
perishable object may not be available at the time of expiration.
Rather than paying the certainty value, the prospective purchaser
is given the opportunity to enroll in a pool for the perishable. At
a certain time the perishable is released to the pool of
purchasers, who are then selected to purchase the item.
FIG. 1 shows the basic system using the Internet or a telephone as
the communications linkage 1. The system communicates and processes
transactions submitted by parties 2, 4, 5, 6 and 7 and offers to
sell perishable objects 3 using at least one central processing
unit 8 by accepting and storing potential transactions in an
enrollment 9 and selecting actual transactions form the pooled
potential transactions in the enrollment 9. The computer system
includes operating system software for controlling the central
processing unit 8, a way to introduce information into the central
processing unit 1, and memory for storing the information 9.
The basic system configuration includes at least one fixed
transaction value for any number perishable objects. A buyer
submits a potential transaction to a proxy which includes an input,
an output and a computer executable program. The program accepts at
least one potential transaction via the input into an enrollment
pool. The program is structured to close the enrollment by not
allowing any potential transactions to be submitted via the input
at some time up to the moment of confirmation of the availability
of perishable objects. Once a confirmation indicator indicates that
a perishable object is available, the potential transactions in the
enrollment pool are selected to be actual transactions for the
perishable object.
The system preferably is designed to allow a user to communicate
with the system through a standard PC computer and modem via the
Internet. The system may also include a voice message system or
voice message generator to allow a person communicating with the
system to do so through a touch-tone or cell phone linkage or to
guide the person in the use of the system. Security is preferably
included to make the system inaccessible without entry of the
proper information, for example, a transaction identification
number identifying the transaction, the perishable object, or the
buyer, a security code corresponding to the transaction, and a user
security code corresponding to the transaction and identifying the
user, the user being the person or representative thereof who is
offering to sell or purchase the perishable object if it is
available.
The computer can be made secure, for example by the implementation
of a "firewall" or protective barrier against unauthorized traffic
or the use of encryption technology, and each case can be password
protected to assure privacy and prevent unauthorized access. For
example, the system may require the user to enter a password or
user identification number or alphanumeric combination and a user
authorization code providing access control to the system. For
increased security, systems may be designed which require user
authentication, for example through the use of voice pattern,
fingerprints, physical signature, or "smart" card. Advantageously,
if the smart card is used, certain embodiments will allow a
transaction to be completed by direct transfer of funds onto the
seller's smart card.
Still further advantages may be realized when transfer of the
transaction value can be automatically, if not immediately, be made
to the seller.
Additional advantages may be achieved when documents relating to
the transaction are automatically generated by the system for
provision to the parties. The documents can be automatedly and
immediately transferred to parties to the transaction. For example,
if a buyer's transaction for an airline flight is selected, a
ticket for that flight could be automatedly generated and provided
to the buyer via a personal computer or a kiosk.
The system preferably also collects and processes transaction data
generated from an agreement reached through the operation of the
system for dissemination, analysis and use by users of the system
or method. For example sellers could be aided in establishing the
optimal timing for the confirmation of the availability of
perishable objects or fixing the value of future transactions.
Buyers could determine the likelihood of having their potential
transaction selected by looking at the odds and percentages for
selection as recorded from previous transactions. Means may be
provided for a user to access actual agreements achieved through
the use of the system in other transactions, for example, through a
menu or voice choice provided to the user via telephone or the
Internet whose selection provides the user with information about
prior agreements. The data may be tabulated in the memory so as to
be accessible by certain categories, for example by sponsor, by
geographic location, sales and market data, the type perishable
object sold (e.g.; a specific route and schedule for a given flight
or bus), or by any other category. In this way, a user of the
system can be guided in confirmations of availability or
submissions of potential transactions by actual agreements reached
in similar transactions.
In an Internet-based embodiment of the present invention, an
Internet website is set up to provide the interface between system
and user. Preferably, the major areas of the website include a
login areas for sponsors, buyers or sellers or their respective
representatives, as well as a login area for administration
personnel who oversee the system. If desired, the website may also
include a publicly accessible area that highlights information
about the system. For increased security, a separate website may be
set up with this information.
Individuals using the computerized system preferably must log into
the system before they can manipulate any data. Preferably, they
can view, enter and change only that information that is within
their access limits--as an agent for party, a directly accessing
party, a sponsor user, a sponsor administrator, or a system
administrator.
A sponsor user is an agent who works for a sponsor, for example an
organization offering perishable objects for sale, which has
entered into an agreement to use the computerized system. In the
alternative, a sponsor could also host the system, as would be the
case where a company which regularly sells its perishable objects
online includes a module on a website for the submission of
potential transactions for selection if perishable objects not sold
through its standard sales processes are made available. Hereafter
it will be assumed if not otherwise indicated that a sponsor is a
selling entity, although this need not be the case as any party can
host or otherwise use the present system and method.
The invention implements the acquisition uncertainty method in
which a buyer agrees in advance to purchase a perishable object at
a future time. The purchase price is adjusted to reflect that there
is no guarantee that the perishable object will be available for
the buyer to purchase. The perishable object can be unavailable for
any number of reasons. It may have been sold through regular
business methods, or there may be a large number of buyers who have
agreed to purchase and all cannot be satisfied.
In the event there are more potential buyers' transactions for the
perishable object, a selection method is employed. Confirmation of
purchase is delayed until a designated future time before the
expiration of the perishable object. As has been discussed, the
purchase price is reduced to reflect the uncertain availability of
the object. This system is especially valuable to the seller of an
item that loses its complete value at the time of expiration, such
as an airline ticket after the plane departs. The seller is able to
sell, because of a lower price, additional items that would
otherwise go unsold. The normal sales process is not influenced.
Marketing information remains confidential with the seller.
FIG. 2 demonstrates the method of the invention as carried out
within the system. A party agent or other user (for example a buyer
or sponsor or seller) accesses the system via the Internet using
any standard web browser or via an ordinary touch-tone or cellular
telephone. No special equipment or training is needed by the agent
to use the system. The system "prompts" the user at each step of
the process and provides automated, on demand help if needed. While
the present embodiment is shown as one performed on-line, the
method of the present invention can be carried out in any number
ways. For example, the method could be employed by a representative
of a seller at a live point of purchase of a perishable object.
The system receives information from the seller about the
perishable object offered including the downward-adjusted cost and
the time at which the perishable object loses its value. The
adjusted cost is fixed at a value 202 to reflect the fact that the
perishable object may not be available to a purchaser choosing to
use this method to purchase it.
Opening an enrollment 204 establishes the time frame in which
agreements to purchase the perishable object will be accepted, and
when they will no longer be accepted. While the enrollment is open,
a potential buyer can register in the system 206 and information
about the potential buyer is collected 208. Upon accessing the
system, the user is met with a greeting followed by a number of
options that may be selected by selecting them from a menu
presented on a computer screen, or, in a telephone based
embodiment, pressing the appropriate number of a touch-tone or
cellular telephone. Accessing a computerized system can be
accomplished in many ways, for example via Personal Digital
Assistants or wireless communication devices; such devices as are
well known an constantly improving in the art are contemplated by
the present invention. A buyer's pin number or some other
identification number, assigned by the system, and two numeric
"passwords" are optionally required to commence the submission of a
potential transaction. The system generates a confirmation of the
information which the user may confirm or cancel and reenter the
information. The system may, upon confirmation of the information,
determine the correctness of the information and the user's
authorization to access the system for that transaction. After
entry and confirmation of the required numbers, the buyer follows
the prompts and submits information and potential transactions
using a mouse or telephone keypad or by typing in the data at his
or her personal computer. The system may also request confirmation
of information entered.
A party such as a potential buyer agrees that by submitting a
potential transaction to the system he or she agrees to be bound
210 to purchase the perishable object if his or her transaction is
ultimately selected, thus making it an actual transaction. At this
point a potential transaction is accepted into the system 212. The
submission and acceptance of a potential transaction can carried
out in any manner so long as there is some indicator in the
enrollment that a transaction for the perishable object will be
consummated upon selection. So, for example, the registration and
agreement to be bound could be carried out in one step, and that
step could indicate that a potential transaction has been accepted
into the system. A potential transaction means that the transaction
has the possibility to be an actual transaction--a consummated
transaction--for the perishable object by virtue of its selection
if the perishable object does indeed become available. Potential
buyers are preferably given the option to withdraw a potential
transaction from the enrollment while it is open.
Once the enrollment is closed 214, potential buyers can no longer
submit potential transactions into the enrollment. The seller
preferably gives the time at which it will be known how many
perishable objects are to be made available for sale.
If, after the confirmation of the availability of the perishable
objects 216, there are perishable objects made available for sale,
a selection is made from the enrollment pool for the number of
perishable objects available 218. Where the objects confirmed to be
available outnumber the potential transactions in the enrollment,
the selection of actual transactions need not necessarily employ a
special selection process since all potential transactions may be
selected to be actual transactions. The selection can be random,
based on the time in which the buyer submitted his or her potential
transaction (e.g. first come, first serve), or based on a pledge to
pay an enhanced adjusted fixed cost which ensures priority
selection if the perishable object becomes available. The invention
may optionally limit the number or percentage of times a specific
potential buyer of perishable objects may be permitted to be
selected when using the system. All of the parties to the
transaction are notified after selection 220. A party to the
transaction is broadly construed to include any party interested in
the outcome of the selection, and can include non-selected and
selected buyers, contemplated users of the perishable object, or
sellers. The notification preferably comes a sufficient time before
the expiration of the perishable object 222 so that parties to the
transaction can arrange their plans in accord with the
selection.
Each step in the system is similar regardless of the item. However,
the details of each step are influenced by the nature of the
perishable object being purchased. In FIG. 3 the purchase of an
airline ticket is used as an example. The system could, however, be
carried out for any transportation service, including bus, train or
ship.
The sequence of steps preferably includes full knowledge of the
perishable object being sold including its regular and its fixed
adjusted price or prices. As shown at Step 302 the perishable
object is an airline ticket for Flight number 123 leaving at noon
on July 23. The normal fare is $300.00 and the discounted fare is
$150.00. The open enrollment period is from 12:01 AM, July 7 until
mid-night of July 21. It is also known that selection notification
will be at noon on July 21.
At Step 304 the open enrollment period in which buyers can enter
the program is established. A list of buyers and their personal
information is made. Each buyer is given an identification
number.
During that open enrollment period a buyer can submit as well as
withdraw their potential transaction without penalty. Once the
enrollment is closed the buyer can no longer cancel the agreement
to purchase the perishable object if his or her transaction is
selected. If selected, the buyer is responsible for payment. As
shown at Step 306 during the open enrollment period, eighteen
parties register and submit eighteen potential transactions. Step
308 shows these eighteen parties also make a binding agreement to
purchase a ticket on Flight 123 if selected. Since Step 310 takes
place prior to the closing of the enrollment, three buyers withdraw
their potential transactions, leaving fifteen buyers at the July 23
close of enrollment, shown at Step 312.
Turning to Step 314, at a set time after closure of the enrollment
and prior to the item's loss of value at the time of expiration,
the seller confirms how many perishable objects are available.
Following the closure of the enrollment at midnight July 20 the
airline states that there are ten seats available on Flight
123.
The method moves to Step 316 where a selection process is used to
choose ten actual transactions from the buyers' fifteen potential
transactions for purchase. For Flight 123 ten buyer's potential
transactions are selected to buy tickets, thus becoming actual
transactions. Five buyers will not be able to buy tickets as their
potential transactions were not selected. Preferably there is a
long enough period of time for a passenger to complete travel plans
after the selection announcement is made at Step 318, where the
system is used to notify those selected. The identification of the
ten passengers is made available at noon July 21. At Step 320 The
ticket expires when Flight 123 departs on July 23.
The method implemented by the invention enhances the ability to use
resources before their value expires. In this example ten extra
seats were sold for Flight 123 that otherwise would not have been
used.
FIG. 4 demonstrates the purchase of a perishable object where the
confirmation and selection of the transactions are performed in
stages. Also shown are multiple fixed transaction values which are
used during enrollment. Again, the purchase of an airline ticket is
used as an example.
As before, the sequence of steps preferably includes full knowledge
of the perishable object being sold including its regular and its
fixed adjusted prices. As shown at Step 402 the perishable object
is an airline ticket for Flight number 123 leaving at noon on July
23. The normal fare is $300.00 and there are three fixed
transaction values of $100.00, $150.00, and $200.00. The open
enrollment period is from 12:01 AM July 7 until noon of July 21. It
is also known that selection notifications corresponding to the
three adjusted fixed values will be: 1) at noon on July 21 for
those who agree to the $200.00 value (48 hours before flight), 2)
at noon on July 22 for those who agree to the $150.00 value (24
hours before flight), and 3) at 11:00 AM on July 23 for those who
agree to the $100.00 value (1 hour before flight).
At Step 404 the open enrollment period in which buyers can enter
the program is established. A list of buyers and their personal
information is made. Each buyer is given an identification
number.
As has been described, during that open enrollment period a buyer
can submit as well as withdraw their potential transaction without
penalty. Once the enrollment is closed the buyer can no longer
cancel the agreement to purchase the perishable object if his or
her transaction is selected. If selected, the buyer is responsible
for payment. As shown at Step 406 during the open enrollment
period, thirty-eight parties registered and submitted thirty-eight
potential transactions. Step 408 shows these thirty-eight parties
also make a binding agreement to purchase a ticket on Flight 123 if
selected. Since Step 410 takes place prior to the closing of the
enrollment, three buyers withdraw their potential transactions,
leaving thirty-five potential transactions in the enrollment at the
July 21 close of enrollment, shown at Step 412. After the close of
enrollment, of the thirty-five potential transactions, fifteen
remain for the July 21 selection, ten remain for the July 22
selection, and ten remain for the July 23 selection.
Turning to Step 414, at a set time after closure of the enrollment
and prior to the item's loss of value at the time of expiration,
the seller confirms how many perishable objects are available.
Following the closure of the enrollment at midnight July 20, the
airline confirms fifteen seats on Flight 123 are available for
purchase by enrollees. While more seats on the flight may be open,
the airline only releases fifteen.
The method moves to Step 416 where a selection is based upon one of
the fixed values. Of the thirty five potential transactions in the
enrollment, only the fifteen who submitted a potential transaction
corresponding to the $200.00 fixed price are eligible for the July
21 selection. While in the current example the enhanced adjusted
fixed value of $200.00 secures priority for selection in the first
of three stages of selection, multiple graduating fixed values
could also be used to secure priority selection of a potential
transaction where the selection was in a single stage. Returning to
Step 416, a selection process, preferably random, is used to choose
ten actual transactions from the eligible buyers' fifteen potential
transactions for purchase. For Flight 123, ten buyer's potential
transactions are selected to buy tickets, thus becoming actual
transactions. Five buyers will not be able to buy tickets at this
stage as their potential transactions were not selected. These
parties can optionally be given the opportunity to remain in the
enrollment and only be obligated to pay the amount corresponding to
the stage they are selected in, or to have their obligation to
purchase be discharged by virtue of their not having been selected.
A non-selected buyer could also given the option to be given
priority in the subsequent stage if they paid the enrolled for
enhanced fixed price of $200.00. In this example it will hereafter
be assumed that non-selected parties are discharged and do not
remain in enrollment.
Preferably there is a long enough period of time for a passenger to
complete travel plans after the selection announcement is made at
Step 418, where a system is used to notify those selected. The
identification of the ten passengers is made available at noon July
21. It should be noted that the notification occurs, as is an
option, substantially instantaneously with the closing of
enrollment and the selection of the actual transactions. This can
occur for any number of reasons. For instance, in a fully automated
system a computer program can be configured--with modules for
example-- to close the enrollment, confirm or accept the
confirmation of perishable objects, select actual transactions, and
send notifications all at once. It is also possible for the
confirmation to precede the closing of enrollment, or in some
instances, be the condition for the closing of enrollment.
Step 420 a second stage, at a set time after closure of the
enrollment and twenty-four hours prior to the item's loss of value
at the time of expiration, the seller confirms how many perishable
objects are available. Again, following the closure of the
enrollment at noon on July 21, on July 22 at noon the airline
confirms five more seats on Flight 123 are available for purchase
by enrollees. While more seats on the flight may be open, the
airline only releases five more.
A selection is based upon another of the fixed values at Step 420.
Of the twenty potential transactions remaining the enrollment, in
this stage it is only the ten who submitted a potential transaction
corresponding to the $150.00 fixed price who are eligible for the
July 22 selection. At Step 422 a selection process, preferably
random, is used to choose five actual transactions for Flight 123
from the ten potential transactions based on the $150.00 fixed
value. An announcement is made at Step 424 to notify those selected
as well as all other interested parties.
The third stage of confirmation and selection is disclosed at Steps
426 to 430. A set time after closure of the enrollment and one hour
prior to the item's loss of value at the time of expiration, the
airline confirms how many perishable objects are available, as
shown at Step 426. Again, following the closure of the enrollment
at noon on July 21, on July 23 at 11:00 AM--an hour before the
scheduled takeoff of Flight 123--the airline confirms five more
seats on Flight 123 are available for purchase by the reaming ten
enrollees with pending potential transactions.
A selection is based upon another of the fixed values at Step 428.
The ten enrollees who submitted a potential transaction
corresponding to the $100.00 fixed price remain for the July 22
selection. At Step 428 a selection process, again, preferably
random, is used to choose five actual transactions for Flight 123
from the ten potential transactions based on the $150.00 fixed
value. Had the example been used where a non-selected buyer from
one of the earlier stages remained in the enrollment, rather than
using a wholly random selection the non-selected buyer could have
been given the option to be given priority in the subsequent stages
if they paid the enrolled for enhanced fixed price. An announcement
is made at Step 430 to notify those selected as well as all other
interested parties. At Step 432 The ticket expires when Flight 123
departs on July 23.
The method implemented by the invention enhances the ability to use
resources before their value expires. In this example thirty-five
extra seats were sold for Flight 123 that otherwise would not have
been used. Furthermore, the method is able to achieve finer
valuation for differing levels of comfort that a given buyer has
with the risk of uncertainty.
A computer-automated system is capable enabling this method of the
present invention. It has a number of interacting components. The
components are in part dependent on the nature of the object being
sold.
The system has several databases including: Object description
Schedules (flights, performances etc) Buyer's background and
financial information Buyer unique identification numbers Agreement
confirmation numbers Buyers enrolled for a specific program Buyers
removed from a specific program Potential Transaction unique
identification numbers Potential Transactions enrolled for a
specific program Potential Transactions removed from a specific
program Removal confirmation numbers Buyers selected for a specific
program The system has the capability of: Menu interaction
Displaying a description of the method Securing object
identification and open period details from seller Securing buyer
background and financial information Securing advance agreements of
participation Securing buyer information who wish removal of
themselves or transactions from program Securing the number of
available objects from seller Generating random numbers for buyer
selection if random selection Matching selected number rank with
individual buyers Generating the selected buyers Notification of
selected buyers Accounting program Generation and preparation of
reports. Setting an indicator thereby indicating the enrollment is
closed. Setting a confirmation indicator thereby indicating the
confirmation of the availability perishable objects. Setting a
selection initiation indicator thereby automatically initiating a
payment from the entity.
The system is adaptable to many modes of communication, including
the World Wide Web network.
The computerized transacting for perishable objects may be
implemented in Internet-based embodiments using a computer program
representing a distributed database application written in a
Mark-up Language such as ColdFusion Markup Language and HyperText
Markup Language (HTML). The system can be distributed through
ColdFusion Server extensions which allow for interactive processing
and Microsoft's SQLserver to allow agents and loan officers to
access it via a standard web browser such as versions 3.0 and up of
Microsoft Internet Explorer and Netscape Navigator, which can be
found on a variety of platforms, including Microsoft Windows,
Macintosh, and UNIX-type operating systems.
Information entered for a transaction is submitted to a central
database via the Internet. The database can index buyers, sellers,
sponsors, sponsor users and administrators associated with that
sponsor, and transactions and perishable objects associated with
that sponsor or seller. It also can index buyers associated with
transactions. This information can be maintained in a detail log
accessible by any entity so authorized.
If a period of time passes without activity when a user is online,
for example 20 minutes under normal network traffic conditions, the
user is automatically logged out for security precautions. For all
or a portion of the data, the system may be designed so that once
data has been entered, a user has a period of time, for example 30
minutes, during which it can be modified or withdrawn but after
which the data cannot be withdrawn. Similarly the program can be
designed to foreclose modification or withdrawal of potential
transactions by establishing a time period for the enrollment,
after the close of which date representative or the potential
transaction cannot be withdrawn.
Referring now to the flow chart of FIG. 5, the computer program
implementing the system enters at Step 510 when a user opens their
web browser (for example Netscape or Microsoft Internet Explorer
3.x or 4.x) and accesses the system website. The user is prompted
by a menu with a series of options, one of which is "enter as
Sponsor" which is chosen. If desired, the system may automatically
write information in the form of ASCII text or "cookies" onto the
user's hard drive as a means of keeping track of the user and the
user's use of the system. The memory stores this information. Upon
access to the system by the user, any preexisting cookies of the
user may be modified to reflect the current access of the system by
the user. Unless the user has explicitly denied cookies on his or
her browser, the computerized system checks for the user's name
through a variable saved in the user's browser. If the user has
logged in before, the user is greeted by username, provided the
user is logging in with the same computer. In Step 511, the sponsor
user is presented with the choice of adding/editing transactions,
viewing all transactions for that sponsor, or logout. All or a
portion of the data in the system may not be withdrawn after a
period of time in which event the user will no longer be permitted
to modify that information. A menu can be provided in which the
user may choose one of two links to separate functions. For
example, a menu bar may be provided on the left hand side of the
screen in which the user chooses by clicking on the appropriate box
in the menu bar corresponding to the function. The user's choice is
saved through intermediate login and contract screens which follow.
Alternatively, Step 511 may be implemented following login (Step
512) discussed below.
The program next moves to Step 512 in which the user must first log
into the system before editing or viewing transactions. The user
must enter a username and a corresponding password. If these do not
match the pairs known by the system, the user is shown an error
screen with the option to try again.
Alternately, if the user has logged in before with the same
computer, his or her username may already be entered into the
system, and the server which distributes the web pages checks the
user's password against the username. If desired, the system may be
designed so that the user has the option to enter a new or
different username to allow multiple users to access the system
from the same computer.
Computer program modules can be written to implement the various
steps of the process, including fixing the value, opening and
closing the enrollment, confirmation of the availability of
perishable objects, and selection of potential transactions. For
example, a module controlling the buyer user identity process may
be created to hold all variables related to a seller or buyer
user's identity and to transactions of that seller or buyer.
A "ValidateNewUserName" module may be created which is called when
the user places an entry in the user name field and leaves the
field form. The user name entry form may be a JavaScript object
which checks to see if the username has already been taken, and if
so, displays an error message.
Step 513 shows the user a system participation agreement if the
correct name and password were entered. The agreement details the
terms of use of the system and details regarding the process, which
would include an agreement to purchase or sell the perishable
object if a potential transaction is selected. A button may be
provided on the menu for either agreement or disagreement with the
contract. If the user agrees to the terms of the contract, he or
she proceeds to the original menu choice (enter perishable object,
adding/editing transactions, or viewing transactions). Otherwise,
the user is returned to the login screen with all information
cleared.
If the user agrees to the participation agreement, the system may
send the user to the original menu choice in Step 511.
Alternatively, the system may be designed to send the user to a
menu with the options of assigning a new perishable object,
reviewing transactions, adding/editing transactions or logging
out.
If the adding/editing transactions (or Perishable Object) choice
was originally chosen, the program enters Step 514 where an
Add/Edit transaction screen allows the sponsor to enter the
following information into the database: Party name Transaction (or
Perishable Object) Description Transaction Value Transaction (or
Party) ID The Party address, city, state, zip code, telephone, fax,
and email credit card name, number, expiration
In telephone-based or live point of service embodiments, some or
all of this information may be entered with the assistance of
system administrators.
The ID is a number can be used for many purposes, such as sponsor
internal tracking, which is selected by a seller, a system program,
or any other party.
The screen also may display the status of the transaction. Upon
submitting the information, the user may be returned a confirmation
screen with all entered information upon which the user can choose
to accept the changes or return to edit the transaction further.
The system provides the user with a period of time, for example,
thirty minutes, to edit some or all of the transaction information
before that information becomes final. (Similarly in the case of a
buyer, the program can be designed to foreclose modification or
withdrawal of potential transactions by establishing a time period
for the enrollment, after the close of which date representative or
the potential transaction cannot be withdrawn, or simply
foreclosing withdrawal of any transactions after a certain
time.)
An Add/Edit screen can include a "submit" button at the bottom,
which sends the information to be checked for formatting. It points
out missing or improperly formatted text, or returns the text for
verification. If the text is accepted, the data is sent to the
database for entry as an addition or update. (Similarly in the case
of a buyer, the program can be designed to foreclose modification
or withdrawal of potential transactions by establishing a time
period for the enrollment, after the close of which date
representative or the potential transaction cannot be withdrawn, or
simply foreclosing withdrawal of any transactions after a certain
time.)
A "TransactionDataEntry" module may be created to hold a template
that processes the user's entry of transaction data and add/insert
it into the database.
If the original choice was viewing all transactions, the program
moves to Step 515 where the View transactions screen reveals all
the information for a given transaction which has previously been
entered during an Add/Edit choice. The user is also given an option
to edit the information with a specified time limit (e.g. 30
minutes). The View screen may, if desired, also display a list of
transactions that have been assigned to a sponsor user.
A module called "SellerUserShow" contains a template which shows
the user these records. If the sponsor or seller user has
administrator privileges, the module shows all user records related
to the seller/sponsor user. A similar module called
"SellerShowTransactions" functions to show transaction
information.
In Step 516, the user may log out of the system from a menu choice
to end the session and return the user to the login screen. This
menu choice also follows completion of the Add/Edit and View
choices of Steps 514 and 515. If a user attempts to engage the
system again, he or she will have to login their user name/password
pair. Logging out clears the password, but not the user name, so
that upon subsequent login the computerized system may check for
the user's name in the user's cookie if the user accesses the
system with the same computer.
The screens appearing in the operation of the system may be created
by suitable computer programs written in a Standard Generalized
Mark-up Language such as ColdFusion Script.
The computer program code for the Login screen creates the login
form if a user is determined not to be in a logged in state. (Step
512). This form passes on a variable value indicating the user's
eventual destination.
The module for the License screen follows the Login program and
checks the user's authentication credentials. If the user passes,
the License screen is shown (Step 513).
A module called Login results follows the License module and sets
the user state to logged in. Unless the user has explicitly denied
cookies on his or her browser, the program also checks to see if
the user's cookie has taken correctly and sends an error message if
it does not. If all is correct, the module sends the user on to his
or her selected destination.
A Logout module may be used to log a user out of the system. The
next time the user tries to use a menu item, he or she will be
prompted for a password and to approve the license agreement.
If the user disagrees with the license, a module following the
License module displays the Disagree screen which indicates that
the user must agree to the license in order to use the system.
An Access Denied screen may be created to show a user who attempts
to access a section he or she does not have authorization for.
A Default page for debugging purposes may also be used to show
current user login status. This page is for a system administrator,
and other users would normally not be able to access this page
without mentioning it explicitly.
The above-described steps can apply equally to sponsor (or seller)
administrators users designated with administrator privileges by
the sponsor). However, the system may be designed so that if the
user is identified as holding administrator privileges, he or she
will see an enhanced version of the sponsor user menu. In addition
to providing the user with the option to assign a new transaction
or perishable object, review transactions, assign transaction
values, and logout, the sponsor administrator menu provides the
options to change sponsor information, change his or her own user
information, add a user, show/edit users, and remove a user.
If the change sponsor information option is selected, the program
sends the user to change the sponsor information screen which
allows the user to add/edit sponsor information stored in the
database, including: Sponsor Name Address City State Zip Code Phone
Fax Email
If the remove a user option is selected, the program sends the user
to user information screens which the sponsor user administrator
can use to change, delete, or add information to any sponsor user's
record to which they have access for their sponsor.
For example, the user information screen may allow the user to
add/edit the following information into the database: User Name
Sponsor Name Address City State Zip Code Telephone Fax Email
Username Password Active User (yes or no) Administrator User (yes
or no)
Computer modules contain the screen forms for entering and editing
sponsor user and new sponsor user information. These modules also
may screen users for administrator privileges, for example, before
allowing the user to edit records. Where a sponsor engages in the
regular online sales of its own perishable product or service, the
present system can be implemented as modules with cooperatively
work within the systems already existing architecture for the entry
of data to consummate its regular sales.
Many of the above-described steps also apply to a buyer or buyer
agent, i.e. an agent that represents an individual or company that
wants to submit a potential transaction or has initiated a
potential transaction with a sponsor who has entered into a
participation agreement to use the system.
The buyer may be notified, for example, by regular mail, that he or
she can login to the website and submit a potential transaction. In
a similar manner, a party may contact the system to submit a
potential transaction. The party may be required to digitally sign
or otherwise acknowledge being bound in accordance with the
participation agreement, and in some transactions tender some form
of payment, to engage the system.
As in the case of sponsor users, the buyer opens his or her web
browser and accesses the system website Step 510. The buyer,
however, chooses an "enter as buyer" option provided on the menu
that appears.
In Step 511, the agent is presented with the choice of reviewing
potential transactions. A menu can be provided in which the user
may choose one of three links to separate functions via a menu bar
on the left-hand side of the screen. As in the transaction of the
sponsor user, the buyer choice is saved through intermediate login
and contract screens which follow.
The program next moves to Step 512 in which the user must first log
into the system before submitting potential transactions or viewing
transactions. A "Login" computer file for an agent similar to the
"Login" file for the sponsor implements this step. The user must
enter a transaction identification number, a security code, for
example, an internally generated random number which functions as a
password), and buyer security code (preferably, a code generated by
the sponsor). If these do not match the information known by the
database, the user is shown an error screen with the option to try
again.
As in the transaction with the sponsor user, Step 513 shows the
party agent a system participation agreement if the correct name
and password were entered with the same options and results
discussed previously. A "License" file similar to the "License"
file for the sponsor user implements this step.
If the user agrees to the terms of the agreement, he or she
proceeds to the original menu choices. Alternately, the system may
be designed to send the user to a main menu with the options of
obtaining transaction information or submitting a potential
transaction for the perishable object. A "Login-Results" file and a
"Disagree" file similar to corresponding files for the
sponsor--user follow the "License" file to implement this step
depending on whether the party agent agrees or disagrees.
Similarly, "Logout", "Access-Denied", and "Default" files
corresponding to similar files for sponsor users are provided.
If the transaction information option was selected, a transaction
information screen is provided which allows the buyer to view the
following information from the database: Transaction or Perishable
Object Name Status Seller Name Buyer name Buyer address Buyer city
Buyer state Buyer zip Buyer telephone Buyer fax Buyer email
The screen displays the current status of the transaction with the
corresponding details of the transaction without the ability of the
agent to edit any of this information. A module controlling the
transaction status process may be written to hold all variables
related to an buyer's transactions.
A "BuyerTransactionInfo" module may also be created which displays
the information an buyer needs to start submitting transactions. A
"SubmitTransaction" module may be created to allow a buyer to
submit potential transactions. This information can be withdrawn
until the a time for submitting transactions passes, at which point
the potential transaction stays in the enrollment until such time
as there is a selection of an actual transaction. Once the
submission time passes, the system forecloses the submission of
potential transactions after that time. Once the enrollment is
closed, the buyer will see a message that the time for submitting a
transaction for the perishable object is now closed in the
system.
A sponsor or seller, upon determining if a perishable object is
available, releases the object to the system. Computer modules for
the entry of this information can be created. A computer program
could also be used to detect and release unsold or otherwise
available perishable objects at predetermined times, the regular
sales of which can be tracked by the program. Perishable objects
can thus be confirmed to be available to the enrolled potential
transactions. At this point the system can select potential
transactions from the enrollment pool to be actual transactions for
the confirmed perishable objects. The system can use programmed
algorithms or tracking to select potential transactions, for
example a random selection algorithm, a program which tracks the
sequence or the agreed price for which potential transactions were
submitted, or combinations thereof.
If the user is presented with the transaction acceptance screen,
the transaction is completed and the buyer is notified of the
dollar amount of the agreement, and, if necessary, the details of
where to send the final agreement request (e.g., the sponsor's
address). Parties can also be notified of other information
pertinent to the transaction, for example, shipping information for
a product sold in the transaction. As shown in FIG. 6, the system
can be designed so that upon completion of the transaction, data
for the agreement is collected and stored for access and use by
sponsors and parties in establishing the bargained value in future
transactions.
The selected platform and hardware to implement the system should
be scalable enough to handle large loads of traffic and data, while
being responsive to user requests.
Similarly, the database chosen should be scalable enough to handle
a distributed data environment, and to be able to handle large
loads of data, while being responsive to user requests.
The application server likewise should be scalable enough to handle
a distributed data environment, and to be able to handle large
loads of data, while being responsive to user requests. The
application server is a popular platform in which to build
applications of this type in order to support future changes,
add-one, modifications, etc.
The server can be an open architecture computer that has the
ability for failed hardware parts to be replaced swiftly. This
configuration also maintains the availability to increase the power
of the machine or counter-offer. For example, a computer having an
Internal Pentium 400 MHz Processor, with 128 MB SDRAI4, a pair of
multi-Giga Byte Hard Drives, a Promise PCIRAID Level 0 Controller
or a RAID Level 5 Controller, a 32.times.CD-ROM, and 3-COM 10-BaseT
Ethernet Card is suitable for use in the system.
The platform for use in the system has the ability to work with
open database systems, provide a reliable and scalable platform for
Internet and line of business applications, and offer breed file
and print services that give users easy and effective access to
information and resources. For example, Microsoft Windows NT Server
4.0, or 4.0 (Enterprise Edition) system, a powerful multipurpose
server operating system, is a suitable platform because of its
broad support of many application servers, its scalability to
support the system of the present invention and its popularity with
developers who create applications of this type. The platform
integrates the following services into underlying operating system
infrastructure: Built-in networking and communication services
Comprehensive Web services for the Internet and corporate intranets
Complete platform form for distributed applications Enterprise-wide
directory services Integrated and robust security services
Easy-to-use and flexible management services.
The system of the present invention uses a webserver, such as
Microsoft Internet Information Server 4.0, that offers proven
scalability and tight integration with the operating system and
other products used in the system. The web server includes
publishing features, customizable tools, and technologies that
permit the creation of Web pages, the publication of information to
the World Wide Web, the sharing of files and data on operating
systems such as Windows NT, Novell NetWare and UNIX servers, and
over numerous databases, including Microsoft SQL Server, oracle,
and Sybase databases, and the search capacity for content in
HyperText Markup Language and Microsoft office document types, and
multiple languages.
The webserver offers process isolation, a feature which protects
applications and Web sites from failure caused by misbehaving
components or Web-applications on the server by running them in
separate memory spaces. The webserver should also have, when
combined with the operating system, built-in distributed
application services that automatically scale to serve thousands of
simultaneous users.
A high performance, open architecture, scalable database, such as
Microsoft SQL Server 6.5 or 7.0, may be used in the system.
In one arrangement, the computer program is one which provides a
scalable platform to deliver high performance Web applications with
any major Web server on Windows or Solaris. Allaire ColdFusion
Application Server 3.1 and its cooperating ColdFusion Markup
Language are suitable for use in developing the system.
In another arrangement, the computer program is one which provides
a scalable three-tiered platform to deliver high performance Web
applications with any major Web server on Windows or Solaris. The
front end is ASP/HTML, the middle tier is Com Object written in C++
or JAVA, and the back end is SQL Server and MTS.
The system may be hosted at a quality data center, such as a
worldwide data center company which provides access to the Internet
and monitors the servers to ensure that they are responding to
Internet requests.
A further advantage flowing, in part, from the on-line nature of
the system is the ability to automatically provide immediate
payment to a seller or initiate an immediate transfer of the
payment or value when an agreement is reached. The system FIG. 7 is
a simplified system variant which includes an interface 702 to
effectuate payment to the seller automatically. For example, the
interface 702 may be to a payment card account system such that if
an agreement is reached, and the seller is a registered cardholder
the seller's credit/debit/charge/entertainment card is
automatically credited with the agreement amount. Similarly, if the
seller has a smart card, stored value card, online creditable purse
or module, or other on-line accessible way for the recipient to
automatically (and directly) receive the transfer, the system may
be configured to automatically credit it with the agreement amount.
Given the numerous ways known to transfer or receive value on-line
and the rate of growth in new ways to do so, it will be appreciated
that the basic principle is the automatic provision or transfer of
value, not the particular scrip, protocol or device used to do
so.
Alternatively, the seller may provide the system with an account
number into which a wire transfer of the funds may be automatically
transferred.
As discussed, additional advantages may be achieved when documents
relating to the transaction are automatically generated by the
system for provision to the parties. The documents can also be
automatedly and immediately transferred to parties to the
transaction. For example, if buyer's transaction for an airline
flight is selected, a ticket for that flight could be automatedly
generated and provided to the buyer via a personal computer or a
kiosk.
Upgrading perishable objects to a higher level is another example
of how the method of the present invention can be used. An upgrade
includes any improved or enhanced version of a product or service.
In the case where the perishable object transpiration service such
as an airline seat, passengers are informed when they are ticketed
that they can enter the upgrade program. In the upgrade program
they agree to purchase an upgrade, at a reduced price, if available
at flight time. The total charge paid for their ticket and for the
upgrade is lower than if they had purchased the upgraded ticket in
the first place. There is uncertainty as to whether any upgrades
will be available and there is uncertainty of how many passengers
will indicate they want to participate. Prior to boarding the
number of upgrade seats available will become known to the airline
and will be entered into the program. A selection process will be
used to choose which passengers will be upgraded. The selected
passengers will be notified. This allows the airline to increase
its revenue per passenger. It gives a passenger an upgrade at less
cost. This can be a significant advantage to a passenger on long
flights. The seats vacated by passengers moving to the upgrade can
then be used to fill standby requests.
The example of the purchase of an airline ticket to illustrate the
application of the system. During the Announcement Period the
possible availability of tickets for a specific flight is made. All
details of the object, in this case an airline ticket, are made.
During the Open Period buyers make an agreement to purchase a
ticket if the ticket is made available at a specific designated
future time. Someone who has made an agreement to purchase can
cancel that agreement without penalty during the Open Enrollment
Period. During the Closed Period the airline decides whether or not
it is going to release any seats and if it does how many. If there
is a seat release there is a selection process as to which enrolled
buyers are selected for tickets. The buyers are notified of the
selection results at the indicated time. After notification a
selected buyer has time to make final arrangements for travel. On
flight day the buyer proceeds to the airport, is ticketed and
reports to the gate. The buyer has gotten on the flight they
desired at a reduced cost.
Although the present invention has been described in relation to
particular preferred embodiments thereof, many variations and
modifications and other uses may be made without departing from the
invention. Accordingly, it is intended that all such alterations
and modifications be included within the spirit and scope of the
invention as defined in the appended claims.
* * * * *
References